Fitch Affirms Minnesota Life’s IFS Ratings; Stable Outlook

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CHICAGO--(BUSINESS WIRE)--Fitch Ratings has endorsed a Insurer Financial Strength (IFS) Ratings
of Minnesota Life Insurance Company (Minnesota Life) and a subsidiary,
Securian Life Insurance Company during 'AA'. The Rating Outlook is Stable.

KEY RATING DRIVERS

Fitch's confirmation of Minnesota Life's ratings reflects a company's
intensely clever change piece fundamentals, regressive risk profile
and fast earnings. The ratings also simulate a clever position in the
rarely rival organisation life word market.

Fitch views Minnesota Life's intensely clever capitalization, that is
reflected by a NAIC risk-based collateral (RBC) ratio of 513% during year-end
2015, as a elemental strength to a rating. Operating leverage, as
totalled by practiced liabilities to sum practiced capital, is among the
lowest in Fitch's star during 4.6x. Financial leverage, tangible as
over-abundance records to sum practiced collateral (TAC), stays intensely low at
3.9%.

Minnesota Life has equivalent and diversified sources of income that
revoke gain volatility. Pretax handling lapse on resources remained
plain during 0.97% in 2015 compared with 1.03% in 2014. Minnesota Life
reported net income of $281 million in 2015 compared with $366 million
in 2014. The decrease was mostly driven by reduced gains on sales of
investments and changes in a value of seductiveness rate and equity hedges
formed on rate and marketplace movements.

On an handling basis, gain were radically prosaic year-over-year.
Operating gain enclosed repeated surprising items, such as the
deferred merger cost impact of hedging formula and pension-related
costs. Excluding these items, core gain declined by 2% in 2015,
essentially driven by adverse mankind in organisation word compared
with auspicious mankind in 2014. Results were rather equivalent by
advantageous responsibility government and above-average prepayment income.
Unfavorable mankind continued into first-quarter 2016, that led to
reduce gain during a period.

Fitch anticipates that low seductiveness rates will continue to offer as a
headwind to Minnesota Life's profitability. Also, poignant capital
marketplace declines could lead to reduce price income and increasing earnings
volatility, given a company's sizeable apart comment liabilities.

Fitch records that Minnesota Life's investment and liquidity profile
continues to be favorable. The association has a large, investment-grade,
publicly traded bond portfolio, comparatively low bearing to unsure assets
and a fast guilt structure.

Minnesota Life has a clever rival position in a organisation life
word market, as a third largest provider in terms of premiums.
The company's rival advantage is upheld by a service-driven
indication and customized systems, that support really clever retention
levels. However, a association faces heated foe from larger
companies with larger scale and resources. Additionally, a company
faces scale vigour in a rarely rival retirement services
market, that continues to consolidate.

RATING SENSITIVITIES

The pivotal rating triggers that could outcome in an ascent include:

--An extended marketplace position and size/scale total with sustained
collateral strength and low item risk.

The pivotal rating triggers that could outcome in a hillside include:

--A decrease in a company's RBC ratio to 450% or lower;

--Significant decrease in financial opening with GAAP-based
lapse on resources next 0.80%;

--An boost in financial precedence above 15% as totalled by
debt-to-total capital.

Fitch endorsed a following ratings:

Minnesota Life Insurance Company

--IFS during 'AA';

--Issuer Default Rating during 'AA-';

--$118 million Rule 144a over-abundance records 8.25% due 2025 during 'A+'.

Securian Life Insurance Company

--IFS during 'AA'.

The Rating Outlook is Stable.

Additional information is accessible on www.fitchratings.com.

Applicable Criteria

Insurance Rating Methodology (pub. 17 May 2016)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=881564

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1004964

Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1004964

Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2detail=31

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